The Fed's Impact Only Goes So Far

The central bank's easy money is persuading businesses to relever balance sheets but not to break ground on new plants, writes Macrostrategy's David Goldman.

Optimism about U.S. consumers drove employment gains in February. Evidently the wealth effect from rising equity and home prices has spilled over into employment. About two-thirds of the employment growth came in construction and consumer-related services.

This is good for stocks. But you don't need a growth story to explain the improvement in...